Question
9. Suppose that Angelina and Brad own the only two professional photography stores in town. Each must choose between a low price and a
9. Suppose that Angelina and Brad own the only two professional photography stores in town. Each must choose between a low price and a high price for senior photo packages. The annual economic profit from each strategy is indicated in the table below: (5 points) Brad Angelina Low Price Angelina's profit = Low price $20,000 Brad's profit = $20,000 Angelina's profit: High price $25,000 Brad's profit = $5,000 High Price Angelina's profit = $4,000 Brad's profit = $23,000 Angelina's profit = $22,000 Brad's profit = $22,000 a. Does Angelina have a dominant strategy? Describe it. b. Does Brad have a dominant strategy? Describe it. c. Is there a Nash Equilibrium? Describe it.
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